Behind Parmalat Chief's Rise:
Ties to Italian Power Structure

After the Old System Began
To Fade, It Became Harder
To Keep Loans Flowing In

By

Alessandra Galloni and

Yaroslav Trofimov Staff Reporters of THE WALL STREET JOURNAL

Updated March 8, 2004 11:59 p.m. ET

PARMA, Italy -- Calisto Tanzi spent his life building twin empires: one to sell milk and one to broker power.

The founder of Parmalat SpA expanded his dairy business until its long-lasting milk filled glasses from Chile to China. In Italy, he financed politicians, bailed out fellow industrialists and renovated cathedrals. He won a knighthood and seats on bank boards.